Financial Accounting - Group 8

8/6/2019 Financial Accounting - Group 8

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FinancialAccounting

Balance Sheet &

IncomeStatement

Presented By :-

Rohit MainiRishi KalantriUdit BubnaVaibhav Aggarwal

SamidhaSamridhi MadaanShikha



Balance Sheet and P&LAnalysis



InfosysBalance Sheet

Shareholder·s Capital has increased by 2.22% from 135cr (2005) to 138cr (2006).

Signifying that company may have come out with public issue.

Since company made profits Reserves & Surplus has increased by 34.14% YoY.

Long Term Liabilities decreased by 27.65% YoYCompany has paid back part of Loans etc.

Increase in Fixed Assets by 31.11% viz. previous year.

Company has purchased some machinery or equipments.

W ork In P rogress has increased by huge percent i.e. 79.24%Company has to incur great costs due to greater W IP.

Decline in level of Investments by 37.65% compared to previous year.Reflects that company has sold its investments made in mutual funds, shares or property.



InfosysBalance Sheet

Debts to company have increased by 21.36%.Signifies increase in credit sales.

Cash Balances has increased by 117.5% in 2006.Could be due to the sale of investments or assets.

Increase in Loan & Advances from previous year by 26.66%.

Could be result of prepaid expenses towards rent, salary, taxes and insurance.Increase in Current Liabilities by 42.37%

Could be due to increase in creditors, B ills Payable or short term loans.

There is an increase in Net Current Asset or Working Capital by 60.28%.



Company·s performance is on the upTotal revenues for the company has increased significantly in 2006 by 25.%%

Due to increase in sales, operating expenses for the company has increasedby 29.58%

There has been a steep increase in Net Income, It has increased by 34.3%

Software development expenditure has also increased.

Gross Profit has increased by 32%.

InfosysP&L



RaymondBalance Sheet

Shareholders funds are unchanged

Since company did not issue any public offer.

Reserves and Surplus IncreasesCompanies profits increase by 8.90% YoY.

Secured Loans increases by 54.45%, Increase in Unsecured Loans by 28%,Company might have mortgaged some asset or fixed deposit.

Increase in Deferred Tax Liability by 21.47 %Company has done transactions in current accounting period which will be taxable infuture.

Increase in Net B lock by 45.07%Reflects purchase of assets in the currents year by the company.



Inventory has increased for the company.W ork In P rogress have increased 2 folds in the current year Inventories have piled up in current year as compared to previous one by almost 20%.

Company debtors have increased by 14.4%This could be due to increase in Credit Sales by the company.

Increase in Cash and bank balancesDue to interest received from debtors or investments.

Current assets have increased by 24% due to advances.Due to accounts receivable and prepaid expenses such as advances given toemployees/ payment of rent in advance.

Company was able to maintain healthy working capital.This can be utilized in operational expenses .

RaymondBalance Sheet



Effectiveness in its working has helped Raymond to post

impressive increase in Operating Revenues by 18.36%

Income from other sources has also increased.

While the Operating expenses have increased.

The rate of increase of Operating E xpenses is less than the rate of increase in Operating revenue,hence efficiency for the company has improved.

Profit after tax for company has shown a tremendous growth of63.46% YoY.

RaymondP&L



No change in shareholder·s equity in current year as company did not issue any public offer.

Increase in Reserve & Surplus by 26.7%Profits increased in the year 2006 and company·s performance have beengood.

Secured loan amount declined in 2006 as compared to 2005

Company repaid 118 million bank loans in current year. Unsecured loan alsovanished in the year 2006, so there is no burden of interest.

Decrease in the value of Net Assets by 6.08%

B lue DartBalance Sheet



Current Asset reflects that debtors have increasedby 32.33%. Cash balance has also increased

The company has given advances this year more by 91 million

Cash & Bank balances increased

Probable reasons-sales increased or asset sold off

Liabilities have increased by 165 million

This could be because of more credit sales in current year.

B lue DartBalance Sheet



Operating Income has increased by 58%.

Employee Cost & Bad debts for the company haveincreased.

There has been an increase in sales resulting in increasein handling costs by almost 72.86%.

Profit Before Tax has increased by 66.62% while incomparison Profit After Tax has increased by only 15.26%.

B lue DartP&L



T here is no change in equity share capital .

Slight increase in Reserve & Surplus by 1.6%

T his shows increase in profits

Secured Loan for Hindustan Lever has decreased by 97%T his shows that Hindustan Lever has repaid majority part of the bank loan.Unsecured loan has also been repaid by the company.

Increase in net assets of Hindustan Lever as company has bought assets.

Company has sold the investments in current year.

H industan Unilever Ltd.Balance Sheet



Cash and Bank balances declined in 2006 by 17.22%.

T here has been a decline in Cash and Bank Balances (362Cr.)

T his could be because company repaid major chunk of Secured Loans.

T here has been a decline in company¶s inventory to the effect of Rs. 167 Cr.

Liabilities of the company has increased by 12.20% YoY.

T his could be due to increase in credit purchase by the company.

Working Capital for the company has considerably increased by Rs.975 Cr.

H industan Unilever Ltd.Balance Sheet



Gross Sales have increased by 7.8%.Though Net Sales have increased by 9.22%.As excise charged is less.

Also total expenses have increased by 9.03% mainlydue to rise in rent, raw materials & advertising exp.

Profit After Tax has increased by 12.20%.

Hindustan Unilever Ltd.P&L



Thank You

Documents

Financial Accounting - Group 8